The May Report: 11/19/2010: Bulletin: If it’s a rumor, it’s a whopper! Google may be looking to buy Groupon for $3.1B or more!
The May Report: 11/19/2010: Bulletin: If it’s a rumor, it’s a whopper! Google may be looking to buy Groupon for $3.1B or more!
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The Scoop section:
– If it’s a rumor, it’s a whopper! Google may be looking to buy Groupon for $3.1B or more!
[Editor's note: Ron May here. I have a report ready to roll but I have to do the table of contents. So expect that report in about an hour or less, but this news about Google and Groupon is far too big to wait.]
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The Scoop section:
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If it’s a rumor, it’s a whopper! Google may be looking to buy Groupon for $3.1B or more!
online.wsj.com/article/BT-CO-20101119-712884.html
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www.marketwatch.com/story/groupon-could-mark-record-for-google-2010-11-19
Groupon could break new ground for GoogleExplore related topics
Internet Hardware Internet Software Google Inc. Yahoo! Inc Story
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Yahoo! Buzz MySpace del.icio.us Reddit LinkedIn Fark StumbleUpon Newsvine |Recommend PrintEmail AlertBy John Letzing, MarketWatch
SAN FRANCISCO (MarketWatch) – Google Inc.’s reported interest in closely-held Groupon Inc. could lead to the most expensive acquisition yet for the Internet giant, which has been in the midst of a buying spree.
While most of Google’s /quotes/comstock/15*!goog/quotes/nls/goog (GOOG 590.18, -0.65, -0.11%) recent acquisitions have been relatively small, popular online coupon provider Groupon could spur Google to pay as much or more than the $3.1 billion it handed over for online display-advertising firm DoubleClick in 2007, in what was the biggest purchase ever for the Mountain View, Calif.-based company.
digits: The appeal of Groupon for Google AllThingsD.com reports that Google is eyeing daily-deals darling Groupon for possible acquisition – and that earlier, Yahoo had also looked to purchase the site. Barron’s Eric Savitz explain why the tremendously successful Groupon has spawned daily-deals copycats and why this site might be appealing to web giants.
The AllThingsD blog reported early Friday that Google is considering paying “well above” $3 billion for Chicago-based Groupon, which has garnered a wide following for its daily online offers of heavily-discounted local deals on everything from cheese steaks to theater tickets. See related story on AllThingsD blog.
According to SharesPost, which provides an exchange for equity in private firms, investors have been seeking shares of Groupon for roughly $38 apiece, implying a valuation of about $1.6 billion.
A Google spokesman declined to comment. A Groupon spokeswoman also declined to comment, referring to the reported merger talks with Google as “just speculation.”
Google, which emerged from the recession relatively unscathed, began the year by announcing to Wall Street that it intended to buy at least one company per month.
The company disclosed last month that in spent roughly $1.6 billion on acquisitions during the first three quarters of 2010 – which included $681 million paid for mobile phone advertising firm AdMob, $179 million for social-networking software developer Slide, and $626 million spread across 37 other, smaller purchases.
In addition to DoubleClick, other significant Google acquisitions have included YouTube, the popular video service bought for $1.65 billion in 2006.
Google recently disclosed that it is now monetizing, or pulling in revenue, from over 2 billion video views on YouTube per week.
An acquisition of Groupon would represent a significant foray for Google further into the market for locally-focused online services and information.
Google recently elevated executive Marissa Mayer to a post overseeing location-based and local services, an area the company described at the time as “crucial to our users and the future of Google.”
However, Google’s M&A activity has drawn increasing scrutiny from antitrust regulators. Google’s purchase of AdMob, for example, was delayed several months before receiving approval from the U.S. Federal Trade Commission.
Google currently intends to purchase travel software developer ITA Software for $700 million. The company said in August that it the U.S. Justice Department would be conducting an extended antitrust review of the deal.
Groupon, which was launched in late 2008, says it now offers daily deals in over 300 different markets around the world. The company announced earlier this week that it’s sealed a distribution agreement that will make its offers available on Yahoo Inc.’s /quotes/comstock/15*!yhoo/quotes/nls/yhoo (YHOO 16.58, +0.01, +0.06%) Web sites.
John Letzing is a MarketWatch reporter based in San Francisco.
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END OF REPORT